Inaugural TD Bank Checking Experience Index of Hispanic Consumers [INSIGHT & REPORTS]
September 4, 2013
TD Bank recently found via its inaugural TD Bank Checking Experience Index that 80 percent of Hispanic consumers consider their day-to-day banking experience to be excellent or very good, even though they are more likely to be paying a fee for their primary account relative to the overall population (65 percent versus 57 percent).
Non-Bank ATM fees and overdraft fees ranked as the most common banking costs for Hispanics and 24 percent of the Hispanic population saw their fees increase in the past year. More than one third of Hispanic consumers ranked non-bank ATM fees as being the most frustrating.
“The TD Bank Checking Experience Index found that nearly half of Hispanic consumers surveyed would consider changing banks to avoid fees but only 13 percent have actually made a switch,” said Felipe Basulto, Retail Market Manager, TD Bank. “All consumers should take some time to talk to their current financial institution or another bank to find the type of account that best meets their needs. Consumers should look for a checking account that provides real value at a reasonable price.”
Hispanics leading the way with technology
Hispanic customers have been quick to adopt technological advances in banking. When it comes to mobile banking, 44 percent of Hispanics utilize the service versus 29 percent of the general population. Eighty percent of Hispanics who use mobile banking report an excellent experience with the service. Furthermore, out of the 19 transactions Hispanic consumers make each month, around 7 (6.8) are made online versus 4.5 at the ATM and 2.5 in a bank location. In fact, nearly half (forty-six percent) of Hispanic consumers list online as their preferred channel to conduct transactions.
Busy bankers – Hispanic consumers conduct more transactions, spend more time on banking
Transaction volume is nearly 25 percent higher for the Hispanic population than for the overall market. On average, Hispanic consumers conduct 19 transactions per month (versus 15 for the overall populations) and spend nearly 7 hours (6.7) a month conducting banking business.
ATMs – convenient, but how costly?
Banking at an ATM is the preferred channel for a quarter of Hispanics and 48 percent of Hispanic consumers rank ATMs as the most valuable way to access their bank. However, non-bank ATM costs impact the largest percentage of Hispanics out of all bank fees (37 percent) and 35 percent of Hispanic checking account holders consider non-bank ATM fees to be the most frustrating.
“With ATMs being a primary access point for so many Hispanic checking account holders, it makes sense for this population to choose a banking partner that offers a large network of convenient ATMs and also to consider an account which reimburses costs associated with use of a non-bank ATM,” continued Basulto.
Regional Differences: New York City and Miami/Ft. Lauderdale
Hispanic consumers in New York City reported significantly higher monthly minimum balance requirements to avoid fees on their accounts then those in Miami/Ft. Lauderdale ($837 versus $633) and more New York City Hispanics have switched banks (16 percent) than in South Florida (10 percent). In both regions, convenient ATMs were ranked as the most valuable element of day-to-day banking access.
“Hispanic consumers are ahead of the curve when it comes to using new technologies, but also value traditional bank fixtures like convenient locations, ATMs, and long store hours,” continued Basulto. “At TD Bank, we focus on creating great experiences through varied channels, such as remote deposit capture on mobile phones, free coin counting for customers, treats for pets who visit our stores and live 24/7 customer service by phone. We’re committed to legendary service for each customer, no matter how they want to do their banking.”
To download the TD Personal Checking Experience Index, CLICK below
